Macalister Demonstration Farm

Dairy Research Farm demonstrating best management practice

 

Macalister Demonstration Farm

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MDF Fortnightly Update 525: Management makes margins

September 11, 2020 by MDF

The MDF report table shows the bottom line, the feed margin, from which all other (non-feed) costs must be deducted to arrive at a profit. A high feed margin will provide a high chance of profit, and vice versa.  Each line in the table, each indicator, has some impact on the feed margin, some requiring closer monitoring than others.

When comparing the MDF’s last milk statement with the same time last year, litres and fat were up significantly, creating higher profits for the farm.

However, comparisons between farms can still show ways to increase the feed margin and profitability even further.

The other farm in the table is a dairyfarm in WA, with a roughly similar calving pattern and current grass consumption as the MDF. The WA farm has a much lower stocking rate, and much higher milk per cow, because the cows are eating far more feed, mostly grass. A bit more of a fancier, and more expensive, concentrate is being fed. The feed conversion is higher. The margin per cow is much higher than the MDF’s, although the margin per hectare is a bit lower.

 

The feed margin plan for the MDF this year is similar to last year: milk less cows, but get the same total farm grass consumed, so that each cow must eat more grass. Management practices to get high grass intake will be needed: first, grow grass so that plenty can be offered; do not graze too hard, but maintain high grass quality; lift and maintain the herd grass intake capacity, by good body condition at calving, good transitioning, and then feeding consistent grass quantity and quality every day. A third of the cows are fresh. The grazing rest time is shortening fast, so we are eating into a grass reserve that had been built.  Grass quality is sometimes an excuse for rapid grazing rotation shortening, but this may reduce the massive potential of spring quantity.

 

FEED MARGIN PERFORMANCE MDF TEN DAYS AGO MDF THIS TEN DAYS ANOTHER FARM Units
Ten days to date: 10-Aug-20 20-Aug-20 20-Aug-20  
Milker graze area 52 58 148 Ha
Milkers 129 150 251 Head
Stocking rate 2.5 2.6 1.7 cows/ha
Average graze rest time 60 51 35 Days
Estm’d pasture consmp’n 20 26 23 kg DM/ha/day
Pasture consum’d per cow 8.0 10.0 13.3 kg DM/cow/day
Pasture growing spend $2.28 $2.28 $2.17 $/ha/day
Estm’d pasture price $115 $88 $96 $/T DM
Conc (incl additives)supp fed/cow 5.0 5.0 5.9 kg DM/cow/day
Conc (incl additives)supp avg price $370 $387 $442 $/T DM
Hay/silage supp fed/cow 0.0 0.0 0.0 kg DM/cow/day
Hay/silage supp price       $/T DM
Feed Conversion Efficiency 96 108 112 kg MS/tonne DM
Total feed intake/cow 12.8 14.8 19.1 kg DM/cow/day
NDF Fibre in diet 31.5% 32.5% 32.4% % NDF
Litres/cow 15.5 20.0 29.9 l/cow/day
Fat test 4.05% 4.40% 3.72% %
Protein test 3.92% 3.69% 3.46% %
Milk Solids per cow 1.24 1.62 2.15 kg/cow/day
Milk price (less levies)/kg MS $5.79 $5.72 $5.77 $/kg MS
Milk price (less levies)/litre $0.46 $0.46 $0.41 $ per litre
Milk income/cow $7.17 $9.24 $12.40 $/cow/day
All feed cost/cow $2.75 $2.80 $3.88 $/cow/day
Margin over all Feed/cow $4.42 $6.44 $8.52 $/cow/day
MOAF /ha /day $10.97 $16.66 $14.45 $/ha/day
Farm MOAF per DAY $570 $967 $2,138 $/day
Feed cost $/kg MS $2.22 $1.73 $1.80 $/ kg MS
Proportion of grazed grass in diet 62% 68% 70% %

Filed Under: Fortnightly Updates

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The Macalister Demonstration Farm, formerly the Macalister Research Farm, is a farmer-owned co-operative established on April 13th 1960. A collaboration between dairy farmers of the MID and the Department of Agriculture at Maffra resulted in the … Read More

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